Why Every S-Corporation Owner Needs a Reasonable Compensation Basis

Steve Perry

Published on: 27/06/2025

S-corporation owners are required to pay themselves a reasonable salary for the work they perform. The IRS scrutinizes these salaries, and failure to properly document reasonable compensation can trigger audits and penalties. Many business owners struggle to determine what is considered reasonable. Steve Perry, EA at Books Taxes & More creates comprehensive, audit-proof reasonable compensation studies based on industry data, government statistics, and detailed job analysis. His studies have never lost in an IRS audit. Proactively establishing a defensible salary structure protects business owners from unnecessary payroll taxes and costly audit adjustments. Contact Steve Perry, EA to secure your defense.